The U.S. credit rating was downgraded from AAA to Aa1, reflecting rising deficits.

From Yahoo Finance: 2025-05-16 18:47:00

Moody’s downgraded the U.S. credit rating from AAA to Aa1 due to rising deficits and budget chaos. This move reflects a significant increase in government debt and interest payment ratios. While investors are bracing for a near-term reaction, market impact is expected to be contained. The decision comes after Moody’s cut its outlook on the U.S. credit rating to negative in November 2023. The downgrade highlights the potential rise in deficits and the need for discussions around the 2017 tax bill extension. Despite the downgrade, Treasury assets remain in high demand, but interest payments are set to absorb 30% of revenue by 2035.



Read more at Yahoo Finance: The U.S. just lost its last pristine credit rating. What that means for markets.